Durban-based forex trader Mfundo Manci (33) has been sentenced to 10 years direct imprisonment after admitting to running a fraudulent investment scheme that swindled victims out of millions.
The Durban Specialised Commercial Crimes Court handed down the sentence on Thursday after Manci pleaded guilty to multiple charges, including fraud and contravention of financial sector regulations. His crimes occurred between June 2020 and April 2021 under his company, Crypto Mzansi Group (PTY) LTD.
How the Scheme Worked
Manci lured investors with promises of 1,000% returns on cryptocurrency investments. Instead of trading the funds as promised, he diverted over R4.5 million for personal use—including luxury purchases and lifestyle expenses.
The Fallout
– Victims lost life savings in the Ponzi-style scheme
– Manci was arrested in Cape Town after going missing
– Authorities recovered funds through asset forfeiture
The Sentence
The court imposed 10 years for fraud, with concurrent sentences for related financial crimes, meaning Manci will serve a full decade behind bars.
A Warning to Investors
The case highlights risks in South Africa’s unregulated crypto investment space. The Hawks have warned the public to verify financial service providers through the Financial Sector Conduct Authority (FSCA) before investing.
This sentencing marks one of the harshest penalties for crypto-related fraud in recent years, signaling tougher action against financial crimes.